Skip to main content

OIL PRICES MIXED

Oil prices fell in London but edged higher in New York today as fresh Western sanctions on Moscow were milder than feared and Libya stook more steps to increase exports. New York's West Texas Intermediate (WTI) for delivery in June gained 24 cents at USD 100.84 a barrel. In London, Brent North Sea crude for June lost $1.46 to close at USD 108.12 a barrel. The London benchmark felt selling pressure after Libya's state oil company declared the end of a force majeure on its Zueitina oil depot, opening the way for a resumption of exports from the terminal. Analysts meanwhile said the sanctions by Washington and Western Europe, targeting Russian President Vladimir Putin's close business circle for Moscow's failure to stop soaring tensions in Ukraine, came in lighter than expected. "The sharp turnaround in Brent oil prices is probably due to the fact the sanctions against Russia were not as tough as had been priced in," said Forex.com analyst Fawad Razaqzada. "The Brent contract is likely to remain supported by geopolitical tensions for the foreseeable future, while the excess oil supply in the US will probably weigh down WTI." Crude futures had rebounded in earlier trade, boosted by renewed strains between Russia and Ukraine. Ukraine, a major conduit for Russian natural gas exports to Western Europe, is monitored closely by investors who are concerned that a full-scale armed conflict will disrupt supplies and send energy prices soaring. Washington placed seven Russian officials and 17 companies on its sanctions list, and the European Union added 15 people to its own blacklist, in hopes of persuading Moscow to back off from Ukraine. The measures fall short of the full-scale economic sanctions previously pressed by Washington. "As the situation in Ukraine continues to remain tentative, we expect volatile trading conditions in the short term, until there is a clear resolution to the Ukrainian crisis," said analyst Myrto Sokou at the Sucden brokerage in London.

Comments

Popular posts from this blog

JIO TARIFF CICK FOR TELECOM STOCKS

Telecom stocks today surged up to 8 per cent after the recent increase in Reliance Jio tariffs, which is largely seen as positive for the sector. Shares of Bharti Airtel jumped 4.99 per cent to close at Rs 497.50 on BSE. Bharti Airtel was the biggest gainer among the 30-share index components. The scrip of Idea Cellular soared 7.74 per cent to end at Rs 98.15 and Reliance Communications zoomed 7.60 per cent to Rs 17.70. Reliance Jio made its service dearer by about 15 per cent for its popular 84-day plan at Rs 459 from October 19, under which subscribers get 1GB 4G data at high speed per day. The company restructured its various schemes by reducing their validity period. The recent increase in Reliance Jio tariffs will increase its average revenue per user by up to 20 per cent and is a positive for the telecom sector, which is seeing a rapid consolidation, says a Philip Capital report. Established telecom sector players have seen huge reduction in their margins. Idea Cellular and Reli…

STOCK MARKET WELCOME NEW YEAR WITH LOSS

Sensex drops 244 pts
A late sell-off in auto, banking and IT shares pulled back the benchmark BSE Sensex from record high level to close down by 244 points, its biggest single loss in past one month, on the first trading day of 2018. Investors preferred to book profits at record highs amid concerns over fiscal slippages and rising crude oil prices and absence of cues from global markets which were closed for the New Year holiday. The benchmark Sensex touched a low of 33,766.15 before settling lower by 244.08 points, or 0.72 per cent, at 33,812.75. This is the biggest single-day fall since December 1 when the index had lost 316.41. The 30-share index had closed at an all-time high of 34,056.83 in the last session of 2017 on Friday. Also, the 50-share Nifty cracked below the 10,500-mark to hit a low of 10,423.10 before settling 95.15 points, or 0.90 per cent down at 10,435.55. Stocks opened on a weak note and remained range-bound for the better part of the day but an intense sell-off in…

NIFTY EARNINGS FLAT IN 2018

UBS Cautious Note

Projecting zero returns from the Nifty, Swiss brokerage UBS has projected a 10 per cent cut in its index target at 10,500 for calendar 2018, even as it remains positive over the long-term. "Top-down, we forecast Nifty earnings growth will recover from 9 per cent in fiscal 2018 to 13 per cent in 2019, but driven largely by financials," the brokerage said in a report. "However, earnings growth is likely to disappoint against consensus forecast of 22 per cent growth for fiscal 2019, implying a 10 per cent cut," it added. Accordingly, the brokerage estimates "no returns from the Nifty in 2018" and has set the index target at 10,500 for this December. The report noted that a sharp earnings recovery, with continued robust macro stability appears priced in by the markets. "A sharp earnings recovery appears priced in. The markets are already close to our 2018 target, given optimistic fiscal 2019 consensus earnings expectations, which build …